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Russia Said to Allow Crypto Mining in Regions With Hydroelectric and Nuclear Power – Mining Bitcoin News

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Russia Said to Allow Crypto Mining in Regions With Hydroelectric and Nuclear Power


Cryptocurrency mining should be allowed in areas with excess energy and prohibited in those that experience deficits, according to Russian officials preparing to legalize it. An expert from the crypto industry has recently marked the regions where Moscow is likely to authorize mining and the ones where it will probably ban the extraction of digital currencies.

Expert Lists Russian Regions Most Suitable for Crypto Mining and Those Expecting Ban

The Central Bank of Russia and the Ministry of Finance recently agreed on legislation designed to regulate the mining of cryptocurrency that should be adopted by the end of this year. Lawmakers working to finalize it have indicated that the industrial activity should be permitted only in parts of the vast country that can produce more electricity than they need.

One of them, the Chairman of the parliamentary Financial Market Committee Anatoly Aksakov, also said that the energy-intensive process should be banned in other areas facing power shortages. The deputy assured that the respective bill will be filed with the State Duma in the near future and also called for the simultaneous regulation of mining and cryptocurrencies.

The idea to authorize the minting of digital coins only in regions with a steady surplus in electricity generation is not new. A proposal in the same direction was made by the Russian Ministry of Economic Development in February, when the department also suggested introducing “acceptable” electricity rates for miners.

Roman Nekrasov, co-founder of ENCRY Foundation, which represents IT companies providing services in the field of blockchain and tech innovations, has shared with RBC Crypto his expectations about which Russian regions are most likely to be allowed to host crypto mining operations. He also listed those where miners will hardly be welcome.

Mining will be permitted in regions with hydroelectric and nuclear power plants, he told the crypto news outlet, which have been already populated with cryptocurrency farms for several years now. These include Irkutsk Oblast and Krasnoyarsk Krai, which have many hydroelectric power plants, as well as Tver, Saratov, Smolensk, and Leningrad regions, with their nuclear power plants.

The minting of digital currencies will probably be banned in the capital Moscow and the adjacent Moscow Oblast, Belgorod Oblast, and Krasnodar Krai, which have historically been energy-deficient, Nekrasov explained. He also expects the crackdown on illegal mining facilities in Dagestan to intensify. The Russian republic is another region with insufficient electricity supply where mining has spread as a popular source of income amid high unemployment.

The crypto industry expert also thinks Russian authorities could allow the extraction of cryptocurrencies in Karelia. However, this could happen under certain conditions such as requiring mining enterprises to support the construction of small hydropower plants, Roman Nekrasov remarked. Karelia was listed among the most popular crypto mining destinations in Russia in study released earlier this year.

Tags in this story
Aksakov, authorization, ban, bill, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, draft law, Law, legalization, Legislation, Miners, mining, mining farms, Regulation, Russia, russian

Do you expect Russia to allow mining only in its energy-rich regions? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Regulation

Castles Made of Sand Dollars: SBF, FTX, and other Three Letter Agents – Bitcoin Magazine

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Castles Made of Sand Dollars: SBF, FTX, and other Three Letter Agents - Bitcoin Magazine



The story of Bitcoin has certainly had its fair share of nefarious characters, criminal activity, bad haircuts and worse wardrobes, and yet our anti-hero du jour has seemed to outdo them all. Sam Bankman-Fried, better known by the three letter acronym SBF, burst onto the scene at the peak of the 2017 bubble, founding Alameda Research that September, just four years after graduating from an internship into a full-time position at one of the world’s largest market makers, Jane Street Capital.

SBF is the son of Stanford Law professor and founder of left-wing super PAC Mind The Gap, Barbara Fried, and Stanford professor Joseph Bankman, an expert on tax shelter laws and government regulation. At the start of 2018, SBF had struck digital gold while taking advantage of the arbitrage opportunity presenting itself between a higher demand for bitcoin in the Asian market, colloquially known as the “kimchi premium”. By the end of the year, and after amassing a considerable fortune from this high-volume bitcoin/dollar spread, he officially moved to Hong Kong, formally founding the derivatives exchange FTX in the following spring.





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Kazakhstan Continues Bitcoin Mining Regulation – Bitcoin Magazine

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Kazakhstan Continues Bitcoin Mining Regulation - Bitcoin Magazine



Kazakhstan is moving forward with regulation that will further stifle its bitcoin mining industry.

The country’s federal parliamentary body has completed secondary approval of a bill “On Digital Assets in the Republic of Kazakhstan.” With a third approval, the legislation will introduce new licensing requirements for bitcoin miners based on their facility ownership and operational structure. It would also require that miners purchase their electricity from the energy provider Korem at market rates.

Previously, specific reporting and tax requirements were implemented, including registration of names, locations and quarterly reports to the government. These occurred as a result of the major influx of mining amidst energy shortages and protests, all while bitcoin miners fled China as a response to the government’s banning of bitcoin.

Kazakhstan’s close proximity to China and previously highly favorable energy access led to the large amounts of hash rate migrating to the country. Afterwards, Kazakhstan went as far as seizing up to $200 million in mining equipment who did not comply with regulation, and the country continues to try and absorb the benefits of the influx in bitcoin mining using legislation like this most recently approved bill.

Bitcoin Magazine previously reported on regulation in Kazakhstan, citing a report from the Russian media outlet Tass. In the report, Ekaterina Smyshlyaeva, a member of the Committee on Economic Reform and Regional Development of the Majilis (Kazakhstan’s federal parliamentary body) detailed the government’s intentions, describing how, “Kazakhstan was used as a raw material appendage of the blockchain industry. [Through] bills, we oblige miners to license in Kazakhstan, that is, to create legal entities and become full-fledged subjects of taxation.” 



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Paraguay Fails To Pass Bitcoin Mining Bill – Bitcoin Magazine

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Paraguay’s Bitcoin Bill Passes the Senate



  • The Paraguay legislature did not pass a bill that would have regulated cryptocurrency mining in the country.
  • The bill, originally passed in July of 2022, was subsequently vetoed by President Mario Abdo Benítez in August, which sent it back to the legislature.
  • If passed, the bill would have limited outsized charges levied against bitcoin miners for their energy usage.

According to a Coindesk report, “The industry has found itself in a fight with the local grid operator provider, Ande, and some members of the legislature who claim that the grid’s infrastructure cannot handle the excess load and that the industry doesn’t greatly benefit the local economy and society.”

Ande had requested that the Paraguayan government raise electricity tariffs by as much as 60% over the industry standard — and the bill would have capped these increases to 15%.

Paraguay has become a major location for bitcoin mining as a result of the country’s abundant power. The Itaipú dam, one of the largest in the world, has proven to be a boon of cheap energy, enabling a rush to absorb this value into the Bitcoin network via mining. If the country seeks to expand on this rush of investment into the energy infrastructure of the country, getting regulation correct is critical to not stifling that.

Industry players involved in Paraguay include Bitfarms, who has a 10MW facility based there, and Pow.re, who has operations totaling 12MW there.



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